By Cody Roberts, CRCM
If there is a new year, there must be new compliance thresholds. Annual adjustments are made to various regulatory thresholds which are based on various consumer price indexes at defined times during the year. The following is a recap of these changes for 2018.
The asset-size exemption threshold for HMDA reporting is increased from $44 million to $45 million, but the HMDA revisions provide additional institutional coverage tests, so be sure to review those as well.
The Community Reinvestment Act (CRA) asset-size thresholds to define small, intermediate small, and large institutions are increased in 2018. A small institution is defined as having less than $1.252 billion in assets as of December 31 of either of the prior two calendar years; an intermediate small institution has assets of at least $313 million as of December 31 of both of the prior two calendar years and less than $1,252 billion as of either of the prior two calendar years; and a large institution has at least $1,252 billion is assets as of December 31 of both of the prior two years.
The asset threshold for determining Small Creditor Status is increased to $2.112 billion (up from $2.069 billion in 2017). This threshold determines whether the Ability to Repay/Qualified Mortgage and HPML escrow requirements apply to an institution.
Adjustments for thresholds relating to open end credit under the CARD Act: The threshold triggering requirements to disclose minimum interest charges remain unchanged at $1.00; the safe harbors for penalty fee violations remain unchanged at $27 for a first violation and $38 for a subsequent violation.
For HOEPA loans, the adjusted total loan amount threshold for high-cost mortgages is increased from $20,579 to $21,032 and the adjusted points and fees dollar triggers for high-cost mortgages is increased from $1,029 to $1,052.
For 2018, a covered transaction is not a qualified mortgage unless the transactions total points and fees do not exceed;
- For a loan amount greater than or equal to $105,158: 3 percent of the total loan amount;
- For a loan amount greater than or equal to $63,095 but less than $105,158: $3,155;
- For a loan amount greater than or equal to $21,032 but less than $63,095: 5 percent of the total loan amount;
- For a loan amount greater than or equal to $13,145 but less than $21,032; $1,052;
- For a loan amount less than $13,145: 8 percent of the total loan amount.
The exemption threshold triggering special appraisal requirements for higher-priced mortgage loans (HPMLs) increases from $25,500 to $26,000.
Loans and Leases
The dollar thresholds for exempt consumer credit transactions under Regulation Z and exempt consumer lease transactions under Regulation M increases from $54,600 to $55,800.